Minimum Wage

2015 Colorado State Minimum Wage

Effective January 1, 2015 Minimum Wage: $8.23

Tipped Employee Minimum Wage: $5.21

The Division of Labor has adopted Colorado Minimum Wage Order Number 31 effective January 1, 2015 through December 31, 2015, to reflect the state minimum wage of $8.23 per hour. No more than $3.02 per hour in tip income may be used to offset the minimum wage of tipped employees.

Article XVIII, Section 15, of the Colorado Constitution requires the Colorado minimum wage to be adjusted annually for inflation, as measured by the Consumer Price Index used for Colorado.

Pursuant to the inflation adjustment requirement of Article XVIII, Section 15, of the Colorado Constitution, if either of the following two situations applies to an employee, then the employee is entitled to the $8.23 state minimum wage or the $5.21 state tipped employee minimum wage, effective January 1, 2015:

The employee is covered by the minimum wage provisions of Colorado Minimum Wage Order Number 31.

The employee is covered by the minimum wage provisions of the Fair Labor Standards Act.

Employers covered by the Wage Order are required to post the Colorado Minimum Wage Order Poster (below).

Colorado State Minimum Wage vs Federal Minimum Wage

Minimum Wage

If an employee is covered by federal and Colorado state minimum wage laws, then the employer must pay the higher minimum wage. Federal minimum wage is currently $7.25 per hour, which is lower than the 2015 Colorado state minimum wage of $8.23. Therefore, based upon current information, covered employers in Colorado will have to pay their employees the higher value of $8.23 per hour under Colorado law beginning January 1, 2015.

Tipped Minimum Wage

If an employee is covered by federal and Colorado state minimum wage laws, then the employer must pay the higher minimum wage for tipped employees. Federal tipped minimum wage is currently $2.13 per hour, which is lower than the 2015 Colorado tipped minimum wage of $5.21 per hour. Therefore, based upon current information, covered employers in Colorado will have to pay their tipped employees the higher value of $5.21 per hour under Colorado law beginning January 1, 2015.

If an employee’s tips combined with the employer’s cash wage of at least $5.21 per hour do not equal the minimum hourly wage, the employer must make up the difference in cash wages.